Professional Indemnity Insurance

Introduction

There can be no legal liability for professional negligence unless there has been a breach of duty of care owed to some person or organization.

The duty of care may arise in contract, in tort or by reason of statute and may be owed by a professional to a client or to a Third Party.

The duty of a professional depends very much on what the professional is employed to do. As the standard of reasonable care and skill is that of the ordinary professional exercising and professing to have the special skill of that  particular profession, the law does not grant any dispensation to beginners. They are presumed to have the amount of experience necessary for the assignment in question demands.

Professions Covered include:

Lawyers, Architects, Engineers, Surveyors & Accountants

Duty of Disclosure

As in all other insurance policies the professional indemnity policy is a contract requiring the utmost in good faith by the proposer to the insurer. The critical question in the proposal is whether the proposer, after inquiry, is aware of any circumstances which might give rise to a claim against him.

The obligation to disclose depends on the knowledge the professional possesses. The professional's opinion on materiality of information is not important. What is important is the fact that if a reasonable man would have recognized that a fact was material to disclose then the professional has no excuse not to disclose it.

Scope of Cover

This legal liability policy covers any claim for damages which may be made during the period specified in the Schedule, as well  as negligence during its currency.

Policy Cover

The company will indemnify the Insured up to but not exceeding in the aggregate for all claims, the sum stated in the Schedule for BREACH OF PROFESSIONAL DUTY, by reason of any negligent act, error or omission whenever or wherever committed or alleged to have been committed by:

• the Insured or
• the predecessors in business of the said insured or
• any person at any time employed by the Insured or such predecessors in business

In addition, the Company will also pay costs and expenses in the defense or settlement of any such claim. The Company's liability for such costs would be reduced proportionately if the limit of indemnity is insufficient to meet the claim.

For further information about this product, please contact our nearest branch and our customer service staff will gladly assist you.